A report released by analysts at Bank of America and Merrill Lynch on January 3rd shows that Amazon's video advertising revenue is expected to reach nearly $3 billion this year, and will receive an additional $1.8 billion in revenue from Prime users who pay ad free fees. This estimate assumes that 70% of Prime users will choose to watch ads instead of paying ad free fees.
Amazon Streaming Prime Video will be advertising in North America starting from January 29th and will be available in global markets starting from February 5th. Amazon Prime North American members can pay an additional $2.99 per month to waive these advertisements.
Amazon's advertising revenue in the third quarter of 2023 increased by 26% year-on-year to $12.1 billion, mainly from its e-commerce business.